>> Narrator: From theCUBE Studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is theCUBE Conversation. >> Hello everyone, welcome to this special CUBE virtual coverage of AWS Summit 2020 Online. This is the 80th summit that has now moved from a physical event to a digital event, a virtual event, it's all online. Of course theCUBE, normally at the summits, are virtual as well. We have an all day program of CUBE coverage here from our Palo Alto studios with our quarantine crew. Great team, who's been sheltering in place for the past two and a half months as well as our team in Boston with Dave Vellante and Stu Miniman. theCUBE is virtual because we have to be and we are going to be continuing doing more coverage and we're going to continue to do that with all the other big events in the enterprise and emerging tech business. Stu and Dave are going to join me. >> Hey John, good to see you, thank you. >> Stu, we're going to do a segment later on more a breakdown in some of the news and highlights. We got Matt Garman coming on, who's the new vice president of sales and marketing. He ran EC2. He now reports to Andy Jassy he's run the field. We got Sanjay Poonen, the chief operating officer at VMware. Coming on as well. And then we got a customer there. We've got a slew of great guests, Swami, Dave Brown, who now runs EC2. The GM of Analytics. Stu, are you going to do a segment with Corey Quinn? Which should be fun. And Dave, of course, you can do a breaking analysis at the end of the day. And we've got a lot of other great content on theCUBE.net. Check it out. Guys let's just jump into it. AWS is really feeling all the pressure as all these cloud guys are. Everyone's working at home. The cloud is on the front stage of the world in terms of delivering capacity, compute everything else. And now they're got to run a digital event. So pretty crazy times. What you guys think?. Dave what's your thoughts? Stu. >> Do you want me to jump in there? >> Yeah. >> So really impressive watching Werner Vogels. First of all last year I saw him up on stage at the New York City summit. Of course, we've seen him on stage at re:Invent many times. But well produced really looks good. You know, challenging to have that keynote feel when you're sitting at home. But they did a nice job of editing. They put him up on it on a big white space here. But what Werner talked about is the scale of cloud. This is what they've been building for. You never know when you're going to have a Cyber Monday. And I just need to be able to scale. He talked about examples like Netflix more than doubling. How many minutes they're doing and walking through all the ways that Amazon is stepping up. You know something we've been looking at close, Dave has been digging into the analysis here. You know, public cloud is being put under the spotlight right now can they react? And Amazon, to their credit is doing a really good job have not been hearing any challenges. They're not leaving their customers behind. They're having lots of people coming and wanting more. They don't want to get people, yeah. >> I want to dig into that a little bit later on, in terms of uptime and high availability. The table stakes right now in this new virtualized world of living and working at home, competing with life is. What services stay up the most? Which ones are failing? Are the staffing levels there? Are they dealing with the remote workforce? All these things are going to impact the cloud. But ultimately, what we're talking about now is who's really leading this? Dave, you know you and I have been riffing on this around who really has the market share lead and what the numbers are. Clearly, Amazon is winning. The numbers all point that way. And some people even have Microsoft ahead of Amazon, don't know how they get there. But bottom line, Microsoft is catching up. But what is the real lead? What's the market share numbers look like? What are you finding in the research that we're doing? >> Well as you know John, we've been tracking this for a while now. And all three companies, the big three, Amazon, Google and Microsoft just reported it well. We actually have some data on this. Guys, if you can maybe share that with our audience. But we saw this last quarter. The reason why, John, that people some maybe people have Microsoft ahead is because they bundle a lot of the stuff into their intelligent cloud and includes GitHub, Azure stack, hybrid, private cloud services and. Oh, yeah, by the way, Azure. But nonetheless, they give us some clues as to what Azure looked like. So this is our estimate of infrastructure as a service and platform as a service. Both Google and Microsoft sort of hide the ball a little bit on the pure play. Amazon very cleanly provides that guidance. And so you can see here, I guess the key points are like you said, Azure and GCP are growing faster than Amazon. Amazon is much bigger. I would say though, if you go back to 2018, Amazon was well over 2x Azure. 2019 it was just kind of around 2x, you're seeing that now with the trailing twelve months. And this last quarter dipping a little bit below. So you are seeing Azure close that gap. But as I say, the numbers are fuzzy. So you have to do your best to squint through them. I look, I read 10ks till my eyes bleed. So you don't have to. >> Stu, what are you talking hearing in terms of uptime Azure had some fails, Google had some fails. But you starting to see the cloud starting to differentiate. See Google doing much more vertical focus. They're obviously going after retail. It's an easy one. Microsoft with Office 365. Doing well on the enterprise. The numbers are there. What's your thoughts on the reliability and uptime? >> Yes so, John first of all Amazon I'm not hearing any reports of issues there. As you noted, where are Microsoft and Google going after Amazon? Where they can. So retail is an obvious one. The ecosystem how well can they partner with companies? Because the fear of many companies is if I partner with Amazon, are they going to come after my business? So when I looked at the online events, John, I got a sneak peek last night of where the Asia-Pacific region. I kind of logged in as if I was from Australia or New Zealand. >> John: I did that too. >> You know, they have regional partner things set up. So, once again, Amazon, a huge global presence, doing a really good job there. And as Dave showed in the numbers while Azure and Google have much higher growth rates, if you just look at raw numbers, Amazon just adding another Google cloud like every quarter to their revenue. So it is still Amazon in the clear lead out in front. >> You know, I think it's important to point out that these clouds have different capabilities. You know, Microsoft put out a blog just very recently saying that it was going to prioritize some of the essential businesses some of the health care workers and several others that were, quote unquote, essentials. So if you're one of those essential business, they were going to sort of allocate capacity toward you. So they're clearly having some scaling issues and they're somewhat using the COVID-19 pandemic as a bit of a heat shield there. Or by the way, they're prioritizing teams as well for the work from home. So it's caveat emptor there, as I said in my breaking analysis, I mean unless you're one of those sort of priority customers and maybe even if you are, you might want to sort of be careful as to what you're actually running in Azure. At the same time you know, clearly Microsoft's doing well. It's got a lot of spending momentum for its platform. And so that's undeniable. A lot of workloads are kind of good enough. >> Yeah and I think just to put a quick plug, if you're watching this segment now, Dave will do a breaking analysis at three o'clock on our stream here. And of course, it'll be on demand on theCUBE.net as well as YouTube. Guys, I want to get your thoughts on some of the hot spots here. Usually around this time, Amazon comes out and shows a lot of GA, general availability. A lot of stuff they announce that reinvents. So, Kendra is going general availability as well as some other services. But one of the things that was interesting to me, I'll get your thoughts on it, because I held the processor in my hand. Jassi tweeted about yesterday, the new arm, EC2 M6G, which is their graviton two processor. It's like super small. This has really been the competitive Edge for Amazon's performance. The stuff that they're doing now is they're lowering the cost and increasing the performance. That's their Amazon law. That's what they do. So, you got the processor, you got analytics. You start to see these GAs. Can you squint through some of the announcements and try to get a feel for where this is going? How's this machine learning? If I'm an enterprise, I got to make some tough calls right now because I've got to double down on the products that are working that are going to get me through the pandemic. And on a growth trajectory and I've got to get rid of the people in the projects or redeploy them quickly. This is going to impact, positioning and ultimately revenues. >> I mean, I think if you look at the Edge specifically and you think about Arm, I think what Amazon's got right is they're not just throwing traditional data center boxes over the fence to the Edge and say, "Okay, here you go, data center in a box." What they're doing is they're sort of rethinking it and then realizing that you're going to have real time workloads running at the Edge, processing very, you have to be very efficient and very inexpensive. So that's where Arm fits. And I think you're going to have to be able to do the processing at the Edge. Much of the data, if not most of that data, is going to stay at the Edge. And it's not a traditional processing architecture. New architectures are going to emerge. David Florrick calls these things matrix workloads. He's written a lot about it. It's just a whole new way of thinking about computing architectures. And really the Edge is going to be driving that. >> Stu, I want to get your opinion on something. And Dave, you can weigh in too, that'd b great. You know, I was watching a little bit of the Down Under APACS stuff yesterday, Stu as well. And I saw Ben Capps, one of our friends, CUBE alumni and co-host, helps the Saudis live in New Zealand. He brought a couple of interesting things I want to get your thoughts on this. It's more of a community angle. Andy Jass, he's been with Amazon for 23 years. Ben mentioned the cloud rod he's still going back. You know, thinking about cloud was 2008 around that timeframe was only a small cast of characters talking about what was going on. And finally, he mentioned the point about Jass's keynote a Fireside Chat. He mentioned, "One way door decisions versus "two door decisions. "The former cannot be undone hence need to be thought over." So you start to see Jass. Twenty three years of experience, you get the cloud arod kind of ecosystem influencers that are out there that we all know. We've been covering this for that long of time. And you've got this notion of the two way door. You started to connect the dots here and what's going on. You start to see a maturation of AWS. But not only that, the community, the truth is out there and it's interesting to see how this plays out in terms of how they talk about the information as we're all on virtual online. Who are the experts? Who are the YouTubers trying to get a flash in the pan? What's the real story? The data, the misinformation is flying around. There's a ton of that going on, I want to see more of it with virtual. But you've got to experience set in the table with Amazon and the community, your thoughts? >> Yes, so John, absolutely it's about you need to have optionality. We know that things change really fast. 2020 key example of having to react to things that I weren't prepared for. Dave was just talking about Edge computing. What I need to succeed an Edge is very different from how I was attacking clouds before. So is Amazon a walled garden? Everything goes in, Hotel California that it was active for years? Or are they going to be flexible? You know, you see Google and Microsoft really trying to attack Amazon here. Many of us that are proponents of open source have attacked Microsoft, have attacked Amazon for years. They've hired some really good people for Adrian Cockcroft couple years ago, Peder Ulander more recently. They've even hired some people from Red Hat and the Linux Foundation. So getting involved in open source and they've been leading some of the efforts when you talked about Edge. But emerging technologies like Serverless and Edge computing. Is it the Amazon way or everything else? Or will they play in an open ecosystem? Will they allow things to be more flexible? You know, we we've talked for a bunch of years. They really softened on their hybrid stance in 2020. Will Amazon soften on their multi cloud stance, especially if you start burrowing in where Edge fits in this environment? It can't be a one way ladder to everything for public cloud. We know it needs to be a diverse environment. And therefore, you know that net community and ecosystem, you know, wants to play with Amazon but also wants a mature and competitive marketplace. We've all seen what happens when there's a monopoly or duopoly out there. It's not good for innovation. It's not good for the customers long term. >> Dave the reality of the marketplace is changing. Customers are going to be virtualize in their world, literally, physically and digitally. How the work's going to get done is to mention open source ones, probably see a revolution of new applications Cambrian explosion of new kinds of capabilities, new demands, new expectations. There's going to be favor here for the people with the steep learning curve who have those has that trajectory as Amazons, as you know, there's no compression algorithm for experience. This is a real kind of nuance point. It's kind of exposed for the next year. Who's got the juice in the marketplace? Your thoughts? >> Well, Werner Vogels today talked about he said, "There's a shift, a fundamental shift going on, "a sort of early COVID-19. "It's not just about the technology, "but it's about how we access applications, "how we build applications." And Amazon is clearly making some bets and betting on data. We know that. And they are also betting on video because they know that's where a lot of the data comes from. When you talk about who's got experience, I mean, clearly Amazon is seeing a huge demand for video services and we're seeing a giant disruption in content distribution networks. And Amazon, I think, is at the heart of that. So, I mean, it's you know, it's interesting to see him doubling down on that, talking about the whole workflow. So I think in terms of experience, obviously at Amazon, they're going to, that's one of their clear sweet spots. But there are obviously other. >> You know, I've heard the term reinvent many times in the past couple of months, especially during the COVID crisis. And it wasn't in context to the Amazon show. There's a real reinvention going on in the marketplace, in enterprises, in small, medium sized enterprises to every business they have to rethink and reinvent what they're doing to get a growth trajectory. And traditionally, we look at these crisis of 2008. Companies that came out on the upswing became a real master master class, examples of growth and a lot of people who weren't prepared, flatline or dropped off. So we are in this point. Even theCUBE we're are digital, we're virtual. We're rethinking it. We're open to new ideas. There's going to be an experimentation phase at the same time, how do you leverage what's out there? This is going to be an opportunity for the cloud, guys. How do you guys react to all that? >> Well, the last downturn was good for cloud, and still you we've talked about how this one certainly is shaping up to be a tailwind as well for cloud. Cloud is doing better than others. I think Gartner put out a stat today they've seen like a 5x increase in inquiries around cloud. Not surprising companies that previously wouldn't even think about cloud now they really have no choice. >> Guys, we've got to cut it there, we've got to go to Cocky. We had all day with theCUBE. CUBE Virtual AWS Summit Online. Check out they got a big portal. It's complicated. Is a lot of a lot of education going on there. It's the classic Emison Summit. We've got great interviews. Guys we've got a great interview coming up next with Matt Garman, who's the new senior vice president or vice president of sales and marketing. He runs all the field, public sector, both of those areas under massive growth opportunities. So, we're going to hear from him. Thanks for coming on, guys. Really appreciate it. Good to celebrate as well in Boston.. And thanks for the insight. So, we'll be right back with more CUBE coverage after the short break. And Matt Garman up next. (upbeat music)